Facebook and Amazon Crackdown on Google's Ad with New Plans and Data Management
Google has been the ad leader for many years now. It has been at the top of online advertising but being in tech means there is always someone out there preparing to challenge that. Facebook and Amazon appear intent on getting a part of the online marketing share from Google. Both companies have reportedly been engaged in enhancing their ad capabilities with Amazon banking on its shopping data and Facebook on its network of users. Can Google be pushed off the top spot?
According to The Information as reported by the Tom Dotan and Amir Efrati, Facebook has been preparing a new ad plan or approach that can possibly threaten Google's ad position. The company has reportedly started funneling resources to its ad server, Atlas. Facebook acquired the server from Microsoft amounting to around $30-$50 million in investment according to Business Insider.
Facebook's strategy will specifically target first Google's display advertising platform DoubleClick. This can start around September. Facebook will introduce a feature call "demand-side platform" allowing advertisers to place automated bids related to their ad inventory. It will work in the same way as the DoubleClick Bid Manager under Google.
On Amazon's side, Venture Beat points out the company's advantage in terms of shopping data. To place or produce relevant ads, companies need relevant data. Google works with data based on what people search on its engine, Facebook works with data based on what people share and like while Amazon works with data best suitable for ads. It works with data on what people search for and buy - the crucial point of targeting ads.
Amazon has been preparing a platform called "Amazon Sponsored Links." This will give ad agencies the power to "purchase" audiences through purchasing bulk ads. In turn, agencies can deliver ads targeting clients based on their demographic information. Analysts believe that Google's Adwords can be in danger or in direct competition with Amazon if this pushes through.
It can be a stiff competition on who can deliver the best ad packages once Facebook and Amazon start rolling out.